Terminating Tax Abatement - Accuride International Inc. (10 Year Real Property)

Home Browse Search

COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 02 -6 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND TERMINATING THE TEN (10) YEAR REAL PROPERTY TAX ABATEMENT FOR ACCURIDE INTERNATIONAL, INC. South Bend Common Council Community and Economic Development Committee Report of Findings and Recommendation Related to Resolution 02 -6 11 February 2002 The Community and Economic Development Committee respectfully reports the following findings and recommendations regarding Resolution No. 02 -6: 1. Accuride Indiana, Inc. petitioned for tax abatement for real property and personal property associated with a new plant to manufacture precision ball bearing . drawer slides for the contract furniture industry. In its petitions, Accuride promised, among other things, that it would: a) Construct an approximately $4.5 million, 168,000 sft. building with approximately $1.5 million in manufacturing equipment at 4300 Quality Drive. b) Employ, as the result of the project 250 additional employees whose total annual salaries would be approximately $6.0 million. 2. In reliance on these promises, the South Bend Common Council in November 1992 granted to Accuride a 10 -year Real Property Tax Abatement and a 5 -year Personal Property Tax Abatement. 3. The Personal Property Tax Abatement expired in 2001, and the Real Property Tax Abatement will expire in 2004. 4. On November 20, 2001, South Bend Mayor Stephen Luecke received a letter from Accuride Vice President of Human Resources, Robert R. Morris, stating the company's "plans to permanently close its entire plant located at 4300 Quality Drive, South Bend ". The letter also indicated that 196 jobs would be eliminated, the first separation from employment would start on January 30, 2002, and the